Loopscale said its priority lending function has been restored. According to Foresight News, all loans can now receive additional collateral, and borrowers can repay all loans except those funded by the USDC Genesis Vault. Borrowers can withdraw collateral after fully repaying a loan, but withdrawals of collateral tied to USDC Genesis Vault-funded loans remain temporarily disabled. Vault withdrawals and other protocol functions are still restricted.
The team identified and contained two attack paths. One targeted the SOL Genesis Vault, using misconfigured asset-pricing parameters to cause collateral to be valued as another asset and obtain about $412,000 in undercollateralized loans. The other used atomic transaction bundles to sell loans with extremely high interest rates into the USDC Genesis Vault, inflating its net asset value before an attempted disproportionate redemption of about $521,000. The system blocked the transaction within 30 seconds of its generation.